7 Chord, an independent provider of predictive prices and analytics to fixed income traders, issuers, and investors, has become the first AI pricing vendor to enter into a strategic data partnership with Glimpse Markets, a newly-formed network of buy-side institutions sharing secondary market transaction data.
This partnership enables BondDroid, 7 Chord’s AI engine, to consume Glimpse-aggregated execution levels for hard currency-denominated emerging markets (EM) sovereign bonds and EUR- and GBP-denominated corporate bonds.
In contrast to US markets, where FINRA-developed TRACE facilitates the mandatory reporting of over-the-counter transactions in eligible fixed income securities, no such consolidated tape yet exists in European primary and secondary bond markets.
Similarly, the US$65 trillion global sovereign, supranationals, and agency market lacks a consolidated transaction data source.
“BondDroid, just like many real-time AI pricing engines, requires high-quality training data to produce predictive bond prices and systematically evaluate their accuracy. In the US, the availability of TRACE allowed for the predictive pricing and analytics industry to flourish. When used in a similar manner, Glimpse-aggregated transaction data unlocks an opportunity to bring accurate predictive pricing to the European corporate and Sovereign debt markets,” said Kristina Fan, CEO of 7 Chord.
Designed for the live trading environment, BondDroid can sit behind a client’s firewall as software that extracts pricing signals from public, vendor, and proprietary data without it leaving a client’s corporate environment.
7 Chord also offers BondDroid Cloud, a managed and hosted version of BondDroid that uses its computing power and ingests datasets curated by its data science team. BondDroid Cloud currently prices 53,000+ debt securities and streams minute-by-minute predictive price updates on more than 20,000 global high-grade bonds, high yield bonds, and emerging markets sovereign bonds.
Glimpse plans to officially launch its buy-side data sharing platform in Q1 2022 with at least 12 asset managers who will actively contribute transaction data. Among the platform’s founding members are such prominent names as Invesco, Columbia Threadneedle, Carmignac, Quoniam, Cowen, PGGM, Allianz Global Investors, Exoé, NN Investment Partners and Groupama Asset Management.
“I’m delighted to announce our new partnership with 7 Chord, who will be using the Glimpse data from our launch early next year to power their cutting edge predictive pricing engine. This is a compelling use case for our unique dataset, and I look forward to working closely with 7 Chord over the coming months as we bring this to market,” said Paul O’Brien, CEO of Glimpse Markets.
Glimpse Markets’ model offers free data sharing between buy-side firms, with third parties able to acquire aggregated data. This is intended to reverse the existing models for data aggregation in which aggregators charge investment managers for data, based on buy-side to dealer transactions.
©Markets Media Europe, 2021
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